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UK government pledges energy review to cut ‘unacceptable’ prices

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* Government to review competition in energy sector

* Cameron says he will cut back green regulations

* Rising energy prices dominate political debate

* Labour says Cameron is panicking over high prices

LONDON – British Prime Minister David Cameron sought to regain the initiative in a political row over soaring energy prices on Wednesday, promising to try to improve competition in the sector and to cut green taxes that have helped inflate prices.

Energy costs have become a high-profile political issue in Britain after the opposition Labour Party promised to freeze bills for 20 months if it won the next election in 2015 and several energy firms unveiled sharp price increases.

Prime minister CameronHow much Britons pay to heat their homes has also played into a wider debate about the cost of living which has risen as inflation and price rises from everything from utility bills to train tickets have outstripped stagnant wages.

“We need to roll back some of the green regulations and charges,” Cameron told parliament during an emotionally-charged debate. “We will be having a proper competition test carried out over the next year to get to the bottom of whether this market can be more competitive.”

Even though the overall economy is improving, Labour, who are just ahead in most opinion polls, have said many people will be faced with a choice between “eating and heating”, accusing Cameron’s ruling Conservatives of being out of touch.

Cameron on Wednesday described the high cost of energy bills as “unacceptable”, but said Labour’s plans to freeze prizes were an unworkable “con”. He too was prepared to intervene in the sector, he added, but in a way that was practical.

Energy supplier RWE npower raised electricity and gas charges by an average of 10.4 percent on Monday. That followed Centrica’s average 9.2 percent rise and an 8.2 percent increase by SSE. Centrica’s shares fell 1.2 percent after Cameron spoke.

The other three members of the “Big Six” who control 99 percent of the British retail energy market are Scottish Power, a unit of Spain’s Iberdrola, EDF Energy and E.ON.

The price rises stirred a debate about the profits made by the six firms and whether consumers are getting a fair deal.

COALITION RIFT?

Labour leader Ed Miliband seized the initiative on energy prices last month with an attack on a market he described as broken with a pledge to freeze bills.

Cameron dismissed the idea as unworkable but conceded that Miliband had “struck a chord” at a time of squeezed wages and rising household bills.

He came under further pressure on the issue on Tuesday when former Conservative prime minister John Major suggested Britain should tax energy firms’ “excess profits”.

Labour energy spokeswoman Caroline Flint said Cameron was “panicking over his failure to address soaring energy bills”.

Any cuts to environmental regulations are likely to anger Cameron’s coalition partners, the Liberal Democrats, a party keen to promote its record on green and social issues.

“(We) will not allow the Conservatives to undermine our commitment to the environment, hurt the fuel poor, or destroy our renewable energy industry,” said a Liberal Democrat source.

Environmental taxes and social charges contribute nearly 10 percent to domestic energy bills, which average more than 1,200 pounds ($1,900) a year for each household.

The competition review will start in the coming weeks and will look at “prices, profits and barriers to new entrants” to the sector and will rule nothing out when it comes to making it more competitive, Cameron’s spokesman said.

More details of any environmental tax reforms will be given in the government’s fiscal policy update to parliament on Dec. 4, the spokesman added.

The energy companies blame the rises on wholesale prices, the cost of the supply network, and the government’s environmental and social programmes.

“We have long recognized there is significant political and regulatory interest in energy supply markets and a balanced audit of competition in the market should be a useful additional step towards building customers’ trust”,” an SSE spokesman said.

– REUTERS

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Energy

Asharami Synergy Unveils Fuelling Solutions In Omagwa

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In line with its commitment to driving access to quality petroleum products, Asharami Synergy Limited, a leading Sahara Group downstream company, has said the public can now access exceptional fuelling solutions at its newly commissioned retail station in Omagwa, Rivers State.

Situated strategically along the Airport Road in Omagwa, the station, which features a storage capacity of 45,000 litres each for Automotive Gas Oil (AGO, also known as diesel) and Premium Motor Spirit (PMS, also known as petrol) is equipped with two pumps and four discharge nozzles for PMS and AGO.

The facility also has ample space for sundry services in a bid to ensure consumers get more “miles and smiles” as well as the energy to “go further” with Asharami’s world-class products.

“The Asharami Omagwa Retail Station is fully operational, offering a range of premium products and services. It’s a one-stop shop that also gives our esteemed customers eat-in and take-out restaurant services, shopping, as well as the Asha lubricants and Asha Service experience which will ensure premium care for all classes of automobiles and engines,” said Oladimeji Williams, Head, Government Relations and Business Development at Asharami Synergy.

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At the Commissioning, Willaims said the new station represents an important step in Asharami Synergy’s expansion plan aimed at reaching and serving more communities responsibly. “This station is strategically positioned close to the airport, serving as the gateway for powering socio-economic development in the community and those close to it, while enabling Asharami Synergy integrate all aspects of its downstream business towards ensuring efficiency and value for our customers,” he stated.

Williams commended the Federal Airport Authority of Nigeria (FAAN) and the Omagwa community leaders for their support and collaboration throughout the project’s duration, describing it as a “seamless and productive process that highlights Asharami’s corporate stewardship and social impact” in the community.

Similarly, Ifesinachi Ezike, Regional General Manager (South South), FAAN, emphasized the broader significance of the new station, stating, “This occasion marks a significant milestone not just for Asharami Synergy but for the airport and the entire community. It marks not just an opening of a new facility but the beginning of a renewed commitment to enhancing the travel experience of all our passengers and stakeholders”.

In a move that underscores its commitment to sustainability and community development, Asharami Synergy also commissioned a solar-powered borehole during the launch. The borehole is set to improve access to clean and reliable water for residents, marking a tangible contribution to the local community.

“At Sahara, we are always making a difference—not just through our business operations; we are unwavering in our commitment to driving sustainable development and building partnerships that enhance the well-being of our host communities,” Williams added.

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Energy

Awards Galore For Shell, Staff At NAPE 2024 Conference

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The Shell companies in Nigeria and staff won awards in recognition of their robust participation at the 42nd Annual International Conference and Exhibition of the National Association of Petroleum Explorationists (NAPE), held in Lagos.

At the closing dinner of the event, the Managing Director of Shell Nigeria Exploration and Production Company (SNEPCo), Ronald Adams pledged sustained efforts by the company to address “the Nigerian energy trilemma by powering progress towards energy security in a sustainable manner”.

On the awards, the Shell was declared Best Overall Exhibitor and Best Exhibiting Energy company (International) just as Geophysicist Somime Oguntola took home the Award of Excellence for Oral Paper (second place).

The icing on the cake was a Shell staff, Johnbosco Uche, being installed as the new President of the NAPE.

It was gathered that the Shell companies in Nigeria have supported NAPE since its founding in 1975, using the skills and expertise of the large pool of energy professionals in its employment to improve its activities especially educational and mentoring programmes.

In addition to being a major sponsor of the 2024 conference, Shell mounted a high-profile exhibition, featuring among other things, career counselling, engagements on Nigerian Content and Contractor development and panel sessions on Women in Industry and Sustainability Energy Challenge.

A highlight was the Shell medical stand which attended to more than more than 500 conference participants and members of the public over the four days of the annual event. The doctors and nurses offered a wide range of services including laboratory tests, deworming, medical consultation as well as ophthalmology checks and distribution of nearly 300 eyeglasses.

Adams referred to the operations of SNEPCo as an example of Shell’s contribution to energy security in Nigeria. “As a result of sustained production from Bonga, we have provided funds to finance development, created a new generation of Nigerian Deepwater professionals, empowered indigenous contractors and service providers, and implemented social investments that have touched lives in the six geo-political zones of the country,” he said.

Adams added, “SNEPCo and indeed Shell are in Nigeria for the long haul. Our commitment is reflected in both our current and growth plans, all of which are grounded in principles of safety, affordability, and competitive performance.”

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Energy

Accugas Denies Culpability In Akwa Ibom’s Power Outage

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Owing to the persistent power outage, which has crippled economic and social life in most parts of Akwa Ibom State and environs, Accugas Limited has washed its hands off the ugly situation.

This was contained in a statement under the signature of its Communications Manager, Okwudili Onyia, in which the company traced the anomaly to a “fault in the 132-KV Aba-Itu transmission line”.

To ameliorate the situation, the company maintained that “It is imperative that the restoration of the Aba-Itu line is completed as soon as possible.”

In addition, the company pledged thus, “Accugas will continue to partner with, and support, the government of Akwa Ibom State towards achieving the government’s agenda for economic development and prosperity of the state.”

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The statement reads, “Accugas Limited, a subsidiary of Savannah Energy, wishes to strongly deny the misinformation concerning its alleged involvement in the current power outage in Akwa Ibom State.

“The power cut in Akwa Ibom State is entirely due to the reported fault in the 132-KV Aba-Itu transmission line, which, unfortunately, is preventing power being transmitted from the National Grid into the State. It is imperative that the restoration of the Aba-Itu line is completed as soon as possible.

“Ibom Power Company (“IPC”) is one of 23 thermal power generation companies which channel power to the National Grid, which in turn disseminates all accumulated power to each State of the Federation through the electricity distribution companies (“Discos”). Indeed, Accugas supplies gas to enable c. 20% of Nigeria’s thermal generation capacity and, as such, is a critical enabler of the Nigerian economy.

“Within Akwa Ibom State, Accugas has been the sole supplier of gas to IPC since 2014 and, together with other Savannah subsidiaries, has invested over US$1.5 billion in gas development within the state. Furthermore, Savannah has recently invested c. US$45 million in a gas compression project at Accugas’ Uquo central processing facility at Esit Eket. Accugas’ commitments also extend to several social investment projects in the state. All the foregoing investments and projects, including other imminent investments Accugas intends to make in the State, demonstrate the Company’s long-term commitment to Akwa Ibom State and Nigeria.

“Accugas will continue to partner with, and support, the government of Akwa Ibom State towards achieving the government’s agenda for economic development and prosperity of the state.”

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